The accountant for Ye Olde Bookstore balanced out the cash register for the day.The register indicates $1,031.50 in sales,the change fund at the beginning of the day was $125 and the actual cash in the register is $1,150.25 (including the change fund,previously accounted for).What is the effect on the financial statements of the entry to record the day's sales and any related overage or shortage?

Question

The accountant for Ye Olde Bookstore balanced out the cash register for the day.The register indicates $1,031.50 in sales,the change fund at the beginning of the day was $125 and the actual cash in the register is $1,150.25 (including the change fund,previously accounted for).What is the effect on the financial statements of the entry to record the day's sales and any related overage or shortage?
The accountant for Ye Olde Bookstore balanced out the cash register for the day.The register indicates $1,031.50 in sales,the change fund at the beginning of the day was $125 and the actual cash in the register is $1,150.25 (including the change fund,previously accounted for).What is the effect on the financial statements of the entry to record the day's sales and any related overage or shortage?

Quizplus · Accepted Answer

The entry to record the day's sales and any related overage or shortage would be a debit to Cash for $1,150.25 (actual cash in register) and a credit to Sales for $1,031.50. There is no mention of any overage or shortage in the problem, so we can assume that there isn't one. This entry would increase both Cash and Sales on the financial statements. The change fund at the beginning of the day is not included in this entry, as it was previously accounted for.

The Accountant for Ye Olde Bookstore Balanced Out the Cash